Lessening the Burden of Reporting Time Pay Laws

Reporting Time Pay laws are notoriously tricky for employers.  Since there is no federal requirement on the matter, at least eight states (and the District of Columbia) have issued their own Reporting Time Pay legislation.  The general nature of these requirements consist of paying nonexempt employees a minimum amount whenever they report to work as required or requested by the employer, even if no work is performed.  However, it is important to note that specific nuances of the law vary across each state.  The best way to eliminate Reporting Time Pay errors and compliance infractions is with automated time clock software.
There are three basic steps for using time clock software to ease the burden of Reporting Time Pay laws. First, the system must have information on employee shifts/schedules. Next, use the system’s pay calculation rules to accommodate state requirements. Lastly, establish company policy that ensures employees clock-in and out before leaving the office.
 
Let’s take a look at the specifics of each state’s Reporting Time Pay law:
California: employee to be paid for half of the scheduled shift at the regular rate, but not less than two nor more than four hours. Time the employee worked can be included in this total. Hours of reporting time pay are not counted towards overtime. Provisions may vary by industry.
Connecticut: provision only applies to four industries. For beauty shops, mercantile trades, and laundry/cleaning/dyeing operations, employee to be paid minimum earnings of four hours. For hotels and restaurants, two hours. Can be waived if regularly scheduled shift is less than four hours.
District of Columbia: employee to be paid for regular shift or for four hours, whichever is greater. Payment can be at designated minimum wage.
Massachusetts: for scheduled shifts of three hours or more, employee is to be paid for at least three hours at minimum wage. Provision does not apply to non-profits.
New Hampshire: employee to be paid for two hours at regular rate of pay.
New Jersey: employee to be paid for minimum of one hour at regular rate, unless employee has already worked the agreed-upon hours for the week.
New York: employee to be paid for the scheduled shift up to a maximum of four hours. Payment can be at the designated minimum wage.
Oregon: employee, if under the age of 18, to be paid for half of scheduled shift, or one hour at regular rate (whichever is more).
Rhode Island: employee to be paid a minimum of three hours at regular rate, even if the scheduled shift is less than three hours.
As users of our time clock software can attest, once the system is configured to handle the applicable Reporting Time Pay laws, there’s one less headache to worry about when running payroll.
Datamatics Management Services, Inc. delivers automated time and attendance software systems,  time clock software and workforce management services that help organizations control payroll costs and maximize productivity.
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